The acquisition of NICE Systems Ltd.'s (Nasdaq: NICE; TASE: NICE) intelligence and cyber division by Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has been completed. The acquired division and its employees have become part of Cyberbit, an Elbit Systems cyber subsidiary managed by general manager Adi Dar.
The acquired division offers solutions that provide law enforcement forces and intelligence agencies with tools for generating communications-based intelligence. The deal is for up to $158 million. Elbit paid NICE Systems $118 million when the deal was completed, and will pay up to $40 million more, depending on the acquired company's future business performance. NICE and Elbit reported the deal in late May.
Elbit Systems' market cap is $3.3 billion, and NICE Systems' is $3.8 billion. Elbit Systems, managed by president and CEO Bezhalel Machlis, produces electronic military systems. The company has marked the intelligence and cyber field as its growth engine, and when the acquisition was announced, Machlis declared that Elbit Systems wanted to be a global leader in it. The Cyberbit subsidiary will operate in both governmental markets and in civilian applications.
NICE Systems, managed by CEO Barak Eilam, provides software solutions for managing customer relations and risks. NICE said that the sale of its division to Elbit Systems was designed to enable NICE to continue its multi-year strategic plan, and to focus on its core markets and business model.
Published by Globes [online], Israel business news - www.globes-online.com - on July 1, 2015
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